Vega Squadron has problems: squads disbanded, debts to players, money problems

In the e-sports arena of the CIS countries, the Vega Squadron team was one of the strongest in such disciplines as Dota 2 and CS: GO. However, in the last year, this organization had certain difficulties that literally destroyed it.

In the fall of 2019, Vega Squadron were forced to disband their CS: GO and Dota rosters. Prior to that, for several months, ggbet it was impossible to place bets on the matches of this team, since they simply did not exist – the players were sitting idle. The reason for the dissolution of the rosters was quite understandable – the organization had financial difficulties, and it became problematic to keep the players.

The fans were greatly upset by the state of affairs of the idols. The Vega team, highly respected in the CIS countries, is loved by fans for the fact that it has presented many strong players to eSports. For example, Vega gave Solo a second chance, which other organizations turned away from after the esports player participated in match fixing. At various times, this team also featured such players as zayac, CeMaTheSlayer, nofear, god, ALOHADANCE, soNNeiko, 9pasha and No[o]ne. As part of Vega, these e-sportsmen were able to achieve good results.

CEO’s message

The head of Vega Squadron, Alexei Kondakov, six months after the dissolution of the rosters, published an open letter in which he explained in detail what was happening to his brainchild.

According to the CEO’s assurances, he chose the wrong strategy for the organization to develop. At the same time, he does not regret getting involved in the idea of ​​creating an esports team. Kondakov said that he should have started reforms in the organization two years ago, but did not.

Its head connects Vega’s problems with the wrong distribution of finances. In his opinion, 80 percent of the budget had to be spent on marketing, brand promotion, and the remaining money on operating activities: salaries of players, staff. However, in the end, about 5% of the available funds were spent on advertising, which was a fatal mistake. Kondakov calculated that the team would attract attention through achievements.

The financial difficulties in the organization began back in 2018. The Dota 2 team was unable to qualify for the main tournament of the year, The International, after which Vega had disagreements with the company’s main sponsors.

Kondakov said that about 15-20 thousand dollars a month is spent on one train. This amount does not include personnel costs: managers, technical workers, etc. And the team had two such rosters. When problems began with investors, it became problematic to pay salaries and pay all expenses, because sponsorship funds were very important for the organization, which became much less.

The teams were disbanded after a while. Vega currently only has a League of Legends roster, which is funded by Riot Games, the game’s developer. The organization has monetary debts to its former Dota 2 and Counter-Strike: Global Offensive rosters. Alexey Kondakov does not name the exact amount, but says that it is not critical.

What will happen next?

In this situation, the head of Vega Squadron does not give up and believes that the organization will be able to return to life. Now the general director of the team is negotiating with investors, looking for new sources of funding. Vega is also actively involved in cleaning up the documentation, legal and financial aspects of the organization in order to attract serious sponsors. Kondakov also added that in the current reality, when no one knows what will happen in six months or a year, it is extremely problematic to look for investments.

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